Suppose you want to buy a $153,000 home. You found a bank that offers a 30-year loan at 4.5% APR.- **What will be your monthly payment?** (Round to the nearest cent.) - $775.23- **How much would you end up paying the bank for the home after 30 years?** (Round to the nearest cent.) - $279,082.27Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) - $850.42- **How much would you end up paying the bank for the home after 25 years?** (Round to the nearest cent.) - [Blank]- **How much did you save by reducing the time of your mortgage loan?** (Round to the nearest cent.) - [Blank]**Question Help:**- Video**Submit Question**

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 30 You buy a home for $460 thousand doliars, paying 9% down, with a 30-year mortgage with a 4.07% interest rate. How many payments do you need to make before you can cancel your PMI? Note: Assume the home's value stays constant, round up to the nearest whole number.
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4. You want to buy a house that costs $620,000. You can put $55,000 down. You get a 30 year fixed-rate loan with an APR of 4.5% compounded monthly. Mor Determine the monthly payment. Show clear work. Work: Work: Answer: Find the total closing costs if they consist of a fee of $1600 and 3 points. Answer: www Suppose that you invest $4800 in an account with an APR of 6.9%, compounded continuously. Determine how much you will have after 3 years. Assume that no additional deposits are made.
4. You are considering buying a new house. The house you want will cost you $150,000. You have $50,000 in cash to spend but will need to finance the rest. The bank has offered you a 30 year mortgage at 4%. What will be your monthly payment across those 30 years (Remember to convert to monthly rather than annual payments).
You bought a house for $500,000 with a 30 year bank loan that has quarterly payments at an interest rate of 7% (APR). Immediately after year 10 (20 years left on the loan). You will resell the house for $ 600,000 and completely pay off the rest of the loan. How much do you have to pay the bank to completely pay off the loan? $428, 652.86 $426,866.75 $361, 273.83 $514,383.43
4. Suppose you want to buy a car that costs $27000 with a loan at 3.875% APR and you want your payment to be below $290. How many years do you need to finance the car? ______ years show work.
5.6 Just a Little Bit Each Month You've recently finished your MBA at the Darnit School. Naturally, you must purchase a new BMW immediately. The car costs about $42,000. The bank quotes an interest rate of 15 percent APR for a 72-month loan with a 10 percent down payment. What will your monthly payment be? What is the effective interest rate on the loan? (See Problem 20.)
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15. Mortgage payments Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning, and then you make monthly payments to the lender. You've decided to buy a house that is valued at $1 million. You have $300,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $700,000 mortgage, and is offering a standard 30-year mortgage at a 12% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate in percentage form to four decimal places.) Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a…
Question 11 You want to buy a $227,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 5%? c) What will your monthly payments be if the interest rate is 6%?

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